Clearing & Settlement - RDM
National Securities Clearing Corporation Limited (NSCCL) is the clearing and settlement agency for all deals executed in Retail Debt Market.
Salient features of Clearing and Settlement in Retail Debt Market segment
- Clearing and settlement of all trades in the Retail Debt Market shall be subject to the Bye Laws, Rules and Regulations of the Capital Market Segment and such regulations, circulars and requirements etc. as may be brought into force from time to time in respect of clearing and settlement of trading in Retail Debt Market (Government securities).
- Settlement in Retail Debt Market is on T + 2 Rolling basis viz. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. Typically trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on.
- Clearing and settlement would be based on netting of the trades in a day.
- NSCCL shall compute member obligations and make available reports/data by T+1. The obligations shall be computed separately for this market from the obligations of the equity market.
- The settlement schedule for the Retail Debt Market (Government Securities)
Sr.No. Day Description 1 T Trade Date 2 T + 1 (11:00 a.m.) Custodial Confirmation 3 T + 2 (10.30 a.m.) Securities & Funds pay-in 4 T + 2 Securities & Funds pay-out
- Funds settlement and securities settlement shall be through the existing clearing banks and depositories of NSCCL, in a manner similar to the Capital Market segment. The existing clearing bank accounts shall be used for funds settlement.
- The existing CM pool account with the depositories that is currently operated for the CM segment, will be utilized for the purpose of settlements of securities.
- In case of short deliveries, unsettled positions shall be closed out. The close out would be done at Zero Coupon Yield Curve (ZCYC) valuation for prices plus a 5% penalty factor. The buyer shall be eligible for the highest traded price from the trade date to the date of close out or closing price of the security on the close out date plus interest calculated at the rate of overnight FIMMDA-NSE MIBOR for the close out date whichever is higher and the balance shall be credited to the Investor Protection Fund.
- Members may please note that the penal actions and penalty points shall be similar to as in Capital Markets.